British Institute: of Technology & E-Commerce

British Institute
ology & E-commerce
Program: MBA (INNOVATIVE MANAGEMNET)
SESSION: Jan 2011
SUBJECT: FINANCIAL RESOURSE MANAGEMENT (remaining part)
SUBMITTED BY: RAHAT ALI
STUDENT ID: 41564
SUBMITTED TO: MR. RICHARD ASIBEY-BONSU
DATE: 4 April 2011
FRM Assignment (remaining part)

Principal Methods for Analysing company:
The principal methods for which the company can be analysing the performance
are as follows:
 Quantitative performance measurement

 Financial Measures
 Qualitative performance measurement
 Non-financial measures
 The balanced scorecard
 The building block model
INTRODUCTION to CORPORATE FINANCING
Organization performance management is a blend of systematic processes and

that facilitate the management to get one or more pre-selected objectives.
They are interrelated to each other for the reason that the management has to
describe its goals and the managers in respect of the data gathered for the
enterprise are very spotlight on the future better performance of the company.
Enterprise performance management in the company is occupied in producing
management reports and of use information related to market and others for
the enterprise.
Enterprise performance management attains 3 activities:
1. Role of management participation in related to data obtains for

company.
2. Information strength applicable to the specific organization.
3. Goal comparison
In order to judge the company performance we need to look overall

performance over the year. Only the detail analysis can tell if the company is
performing well or not. Or otherwise if it needs improvements.
Financial Analysis
Financial analyses are of dissimilar types and design which are related to the
data available and the task that is performed by the organization. Financial
analysis can be classified in 4 different categories by keeping a view of
information and design of the operation.
 Internal Analysis:
Internal analyses are more systematic than external analysis in general,

and are also dealt by the Finance department of the company.
 External Analysis:
The external analyses is done by the peoples or firms outside the

company usually called stakes holders i.e. banks, insurance companies
and other stockholders etc.
unlike methods are also used to analyse the performance of the company that
are listed below:
 Vertical analysis
 Horizontal analysis
Vertical analysis is done by comparing the other figure by the base and the base
need to be selected before like total asset select as base 100% & compare the
remaining balance sheet with this amount.
Horizontal analysis is a method in which each value is compare with its equitant
value of the last years value. And presents those values in horizontal columns.
Other tools used for financial analysis are as follows:
A. Ratio Analysis
B. Trend Ratios or percentages
C. Cash Flow Analysis
D. Comparative Financial Statements
E. Common Size Statements
F. Funds Flow Analysis
These methods are applied to present the financial data in more comprehensive
and sophisticated approach in order to help with decision process.
NON-FINANCIAL Analysis:
Balance score card:
The managers normally look the presentation of the organization by the

different aspects which are as follows:
Customer Aspect:
The performance of the company by the customer aspect pushes to view

the customers perspective, the level of satisfaction and how the
organization will deliver their products and services to the end users.
 The company provides services to the customers.

 The potential to enter in to the new markets.
 The level of satisfaction provided by the company to the customers.
Internal business Aspect:
In this Aspect the focus is on to have a below mentioned areas.
 The quality of the performance taken by the enterprise.

 The level of by and large performance of the organization
 The level of convention the prospect of the customers
 The areas where the firm is improving
Innovation and learning Aspect:
This aspect focus on the couple of points given below;
 Level of training given by the company

 How dynamic the firm will be
Financial Aspect:
Shareholders are more focused in this Aspect specifically in relation to

mention below;
 Cash Flow statement attractive appearance

 The level of market shares the company is presently having
Performance measured in non profit organization:
The goal of the non profit organisation is provide service of social or moral
value. we will attempt to measure this service.
The purpose for such an organization may comprise the following:
 user satisfaction
 Maximisation of left-over
 expansion
Value for money:
Value for money is a structure by which non profit organisation can be

calculated. It separates the performance of business into 3 main areas also
known as by three E’s.
 Effectiveness (an output measurement)

It describes that how good the organisation achieve its goal. possibly an
easier way of understanding it would be to see how well the output of
services match the customer requirement.
 Efficiency (the relation between input and output)

It describes how efficient funds are used; it calculates the output of
services for a specified level of resources of the input.
 Economy (an input measurement)

It measures the cost of sourcing the input assets. The goal is to reduce
the cost of the input for a given pattern and level of the resource.
Conclusion:
The above discussion is based on the principal methods used to analyse the
performance of different companies. Which can be done by different methods
and different aspects such as financial and nonfinancial analysis, qualitative and
quantitative analysis? In non profit organization performance is measured in
different terms and financial analysis is done in the corporate firms and
organization.

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British Institute

ology & E-commerce

Program: MBA (INNOVATIVE MANAGEMNET)

SESSION: Jan 2011

SUBJECT: FINANCIAL RESOURSE MANAGEMENT (remaining part)

SUBMITTED BY: RAHAT ALI

STUDENT ID: 41564

SUBMITTED TO: MR. RICHARD ASIBEY-BONSU

DATE: 4 April 2011

FRM Assignment (remaining part)

 Quantitative performance measurement

INTRODUCTION to CORPORATE FINANCING

Organization performance management is a blend of systematic processes and

Enterprise performance management attains 3 activities:

1. Role of management participation in related to data obtains for

In order to judge the company performance we need to look overall

Internal analyses are more systematic than external analysis in general,

The external analyses is done by the peoples or firms outside the

Other tools used for financial analysis are as follows:

B. Trend Ratios or percentages

C. Cash Flow Analysis

D. Comparative Financial Statements

E. Common Size Statements

F. Funds Flow Analysis

The managers normally look the presentation of the organization by the

The performance of the company by the customer aspect pushes to view

 The company provides services to the customers.

Internal business Aspect:

In this Aspect the focus is on to have a below mentioned areas.

 The quality of the performance taken by the enterprise.

Innovation and learning Aspect:

This aspect focus on the couple of points given below;

 Level of training given by the company

Shareholders are more focused in this Aspect specifically in relation to

 Cash Flow statement attractive appearance

The purpose for such an organization may comprise the following:

Value for money:

Value for money is a structure by which non profit organisation can be

 Effectiveness (an output measurement)

 Efficiency (the relation between input and output)

 Economy (an input measurement)

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